Paid Ads

ROAS explained: the only ad metric most owners need

Devon Clarke9 May 20265 min read

ROAS — return on ad spend — is simply revenue divided by ad spend. Spend $100, make $400, and your ROAS is 4x.

It's the fastest gut-check for whether a campaign is working. But context matters: a 2x ROAS can be great for a high-margin service and terrible for a low-margin product.

Know your break-even ROAS first. If your margins mean you need 2.5x just to break even, then a 3x campaign is profitable and a 2x campaign is quietly losing money.

Track it weekly, not daily — ad platforms need data to optimise, and daily swings will drive you mad.

#Paid Ads#Analytics

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